What is the difference between a bookkeeper, a controller and a CFO?
A bookkeeper records transactions and reconciles accounts. A controller owns the accuracy of the books: the close, accruals, reconciliations review, controls and financial statements. A CFO looks forward: cash planning, financing, lender and investor relationships, acquisitions and strategy. A growing franchise group needs all three kinds of work, though not always three hires.
| Role | Main job | Typical output | BLS median pay (May 2025) |
|---|---|---|---|
| Bookkeeper | Record transactions, pay bills, reconcile bank and card accounts | Up-to-date ledgers | $50,670 |
| Staff accountant | Accruals, reconciliations, lease and fixed asset schedules | Reconciled balance sheet | $83,680 |
| Controller | Run and review the close, set controls, produce financial statements | Signed-off monthly statements | $166,570 (financial managers) |
| CFO | Cash, financing, lenders and investors, acquisitions, strategy | Forecasts, board and lender packages, deal models | Not reported separately |
How many locations before a franchise group needs a controller?
There is no fixed number, but complexity, not headcount, is the trigger. A handful of stores in one entity can run on a good bookkeeper and a CPA. Once you have many entities, intercompany charges, lender covenants or investors, usually somewhere around 10 locations, someone at controller level needs to own the close.
| Stage | What usually works | What starts to break |
|---|---|---|
| 1 to 5 locations | Bookkeeper plus an outside CPA for year-end and tax | Little; the owner still knows every number |
| 6 to 15 locations | Bookkeeping plus controller-level review, in-house or outsourced | Close slips, store P&Ls disagree, intercompany stops matching |
| 15 to 50 locations | A controller-led team, or an outsourced team with a named lead; CFO support for lenders and growth | Covenant reporting, acquisitions, audit or review requests |
| 50+ locations or PE-backed | Controller and CFO, full-time or fractional, with a team or outsourced provider underneath | Board reporting, add-on acquisitions, audited statements |
What are the signs you have outgrown your bookkeeper?
The clearest signs are a close that takes weeks, per-store P&Ls nobody trusts, lender or franchisor reports rebuilt by hand, intercompany balances that do not match, and year-end adjustments from your CPA that change the numbers you ran the business on. These are review and ownership problems, not effort problems.
- The books close three or more weeks after month end, so decisions run on old numbers.
- Store P&Ls are inconsistent: the same cost lands in different lines at different locations.
- Royalties, ad fund or CAM are paid as billed and never recalculated.
- Lease accounting under ASC 842 is done once a year, or not at all.
- Your CPA makes large adjustments at year end, and nobody can explain them.
- A lender, investor or buyer asks for something and it takes weeks to produce.
- One person holds all the knowledge, so a vacation stops the close.
Should you hire in-house, use a fractional CFO or outsource?
In-house staff give control but cost the most and leave gaps when people leave. A fractional CFO adds senior judgment for planning and financing but does not keep the books. An outsourced accounting team covers daily bookkeeping through the close. Many groups combine an outsourced team with a fractional or in-house CFO.
| Option | Best for | Watch for |
|---|---|---|
| In-house bookkeeper | Small groups with simple structures | No senior review; a single point of failure |
| In-house controller and team | Larger groups that want finance staff on site | Salary, benefits, recruiting and turnover; software licensed separately |
| Fractional CFO | Financing, forecasting, acquisitions and board work | Part-time by design; still needs clean books underneath |
| Outsourced accounting team | Daily bookkeeping, payables, close and reporting for many entities | Check scope, who reviews the work and who signs off the close |
Whichever route you choose, ask who signs off each month's close, how fast it closes, and what happens when that person is away. Those answers matter more than the job title.
What should a franchise group ask before choosing?
Ask how many franchise entities the person or provider handles today, how many days the close takes, who reviews and signs off, how royalties and leases are handled, what the security controls are, and what is out of scope. Payroll, tax returns and inventory are common gaps, so confirm who covers each.
- How many multi-entity franchise groups do you support, and in which industries?
- How many days after month end are the books closed, and is that every month?
- Who reviews the work, and who signs off each entity's close?
- How are royalties, ad fund, intercompany and ASC 842 leases handled?
- What independent audits of your controls, such as SOC 1 or SOC 2 reports, can you share?
- What is out of scope: payroll, tax returns, inventory, audit support?